Local authority pension levy question. Indoor V's Outdoor employees

T

Time Lord

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I am an outdoor worker in a local authority.

I earn €38.000 euro. I pay a full stamp.

I will not retire on anything like an indoor members pension even if we are on the same annual wage.

How will the ps levy effect me as opposed to the indoor member? Will we pay the same amount.

Tomorrows humour riding on this.
 
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Re: help! local authority pension question.

How is your pension different from an indoor worker's pension?
 
Re: help! local authority pension question.

They will retire on close to half wages. I after 30 years plus will get about 40 euro a week. I kid you not. I took out an A.V.C. and it has bombed. There are major differances between outdoor workers and indoor in local authorities. Sick pay etc. If I go sick I march myself off to the labour exchange and draw down down from the state. I am permanent and pensionable with 10 years service but need to get an answer on the levy.
 
That's crazy Time Lord.

The way the levy works seems to be on gross wage.

That being the case I reckon it will cost you about €2,500
 
I like my job.I still want to share this though. I wonder do all I.B.E.C. members and supporters know the terms and conditions that a lot of public sector workers are under. We start at 8.30. We get a half hour for lunch and work straight through to 5. I work every second Saturday for the flat rate, not time and a half etc. I get 18 days annual leave but I do get a free yellow jacket. The amount of public service bashing makes me sick.
 
Re: help! local authority pension question.

Time Lord said:
They will retire on close to half wages. I after 30 years plus will get about 40 euro a week. I kid you not. I took out an A.V.C. and it has bombed. There are major differances between outdoor workers and indoor in local authorities. Sick pay etc. If I go sick I march myself off to the labour exchange and draw down down from the state. I am permanent and pensionable with 10 years service but need to get an answer on the levy.
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Hi Time Lord

I note that you are paying the full rate of social welfare contribution. As a result, your pension benefits are probably 'co-ordinated' or integrated with the State pension. What this means is that someone with forty years service would get a pension equal to 50% of pay, inclusive of the State pension.

I haven't seen the details of how the levy works, but I presume co-ordinated workers will pay the levy on their co-ordinated salaries i.e. salary less twice the State pension. The current State pension is €230.30 per week. So if the offset is twice the State pension, you would pay a levy based on €38,000 - 2 * 52 * €230.30 = €14,049.

I should stress that this is only a guesstimate. It's possible some other approach is used, e.g. have an offset of 1.5 times the State pension to reflect the fact that your retirement gratuity is not integrated or something even more complicated. However, it would seem very unfair to apply to same levy to those with a State offset and those with no State offset, so I imagine there will be some deduction made from salary when the levy is being determined.

Homer
 
Re: help! local authority pension question.

Thanks Homer. I think that makes it work out to a contribution of about 18.30 ish. Humour good for tomorrow so.
Thanks again Time Lord
 
I hope my speculation in my earlier email is correct, but you should wait to get confirmation of exactly how the levy will be determined.

I tried to find out a bit more about the levy and all I can determine is that civil servants will be required to pay 10% of salary in excess of €12,500. I can't see anything specific about local authority workers or other integrated public sector employees.

If I'm right in my guesstimate and there's an offset of twice the State pension, someone earning €38,000 per annum would end up paying 10% of (€38,000 - 2 * €11,975.60 - €12,500) = €154.88 per annum, or just under €3 per week.

However, if the offset is only 1.5 times the State pension, someone earning €38,000 per annum would end up paying 10% of (€38,000 - 1.5 * €11,975.60 - €12,500) = €753.66 per annum, which is around €14.50 per week.

So there's a big difference depending on the approach taken and I haven't seen anything yet that confirms that the levy will take account of whether or not you are paying a full stamp.

Homer
 
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